Data shows that China Latin America trade has extraordinary vitality

According to the website of Panama's "Star" on November 16th, China's rise in foreign trade in Latin America and the Caribbean over the past 20 years has attracted attention. This is because the bilateral trade volume was only slightly above $14 billion in 2000, but by 2022 it had approached $500 billion, an increase of 35 times.
Due to the tremendous vitality of this trade exchange, China has maintained its position as the second largest trading partner in the region for many years. In terms of Latin America and the Caribbean region, it has also become increasingly important in China's foreign trade over the past 20 years, with Latin America and the Caribbean region accounting for more than the United States in China's total imports.
The above are the main conclusions of the recent annual report of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) titled "International Trade Outlook for Latin America and the Caribbean 2023".
This report explores the complex situation that the region's trade will experience in 2023 against the backdrop of weak global demand, declining raw material prices, and increasingly close links between trade and geopolitics. Similarly, the report also summarizes the trade relations between the region and China in recent decades.
The report details that the trade between Latin America and the Caribbean region and China has a clear cross industry structure: in 2022, 95% of Latin America and the Caribbean's exports are raw materials and natural resource based manufactured goods, while 88% of goods from China are low, medium, and high-tech manufactured goods.
According to reports, three countries in Latin America and the Caribbean have had free trade agreements with China that have been in effect for over 10 years: Chile (effective since 2006), Peru (effective since 2010), and Costa Rica (effective since 2011).
Recently, ECLAC has found that the region has once again shown interest in deepening trade relations with China through the signing of such agreements.
For example, Ecuador and Nicaragua signed free trade agreements with China in May and August 2023, respectively. Similarly, in July 2023, China and Honduras began negotiations on a free trade agreement.
According to the report, in absolute terms, ECLAC believes that trade between Latin America and China has shown extraordinary vitality, while the significant growth of the Chinese economy, especially between 2000 and 2011, has driven a supercycle of high raw material prices, benefiting most regions in Latin America and the Caribbean.
ECLAC believes that with urbanization and the expansion of the middle class driving China's demand for safe, diversified, and high-quality food, Latin America and the Caribbean region has enormous opportunities due to its abundant natural and water resources, possessing the necessary comparative advantages to supply China with nutritious, safe, and high-quality food.